Ecora Resources PLC (LSE:ECOR, TSX:ECOR, OTCQX:ECRAF), the recently renamed Anglo Pacific Group, has reported a strong third-quarter performance that extended its record portfolio contribution for the first nine months of the year.
The battery metals-focused royalty company, which changed its name during the quarter to reflect its change in focus from coal to “commodities required to support a sustainable future”, posted an update revealing a portfolio contribution of US$34.1mln for the quarter, up from US$23.6mln a year ago.
For 2022 to date, it reported a contribution of US$122.18mln, up 206% on a year ago. The company said this was despite a backdrop of an expected softening in commodity prices and delays to cobalt shipments from Voisey's Bay.
However, it noted that commodity prices have started to stabilise and increase again at the start of the fourth quarter, while the delayed shipments will be received in that period too.
Developments during the quarter included the US$185mln acquisition of an advanced development stage copper and nickel royalty portfolio from South32.
A final investment decision was also made by OZ Minerals to begin construction next month on the West Musgrave copper and nickel project in Australia, on which Ecora holds a 2% NSR royalty, while Brazilian Nickel announced that production had started at a small-scale plant at the Piauí Nickel project, where Ecora holds a 1.25% royalty.
Ecora said net debt stood at US$40mln at the end of September, up from US$20.5mln over the quarter, while it has roughly US$180mln of liquidity available to fund growth opportunities after extending its borrowing arrangements with a new accordion feature for potential acquisitions.